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To: Shack who wrote (64333)	1/23/2003 2:39:45 PM
From: mishedlo	Read Replies (1) \| Respond to of 209892

They have backed off strong $ policy cause US manufactors complaining IMO. Personally I do not think this will do any good(and aparently neither do you). US manufactors not going to compete against asia especially China no matter what. But right now they are desparate to try anything and everything. I can not prove this hypothesis, but if they wanted to support the $, especially with Japan complaining, they have had every chance to do so. M

To: Shack who wrote (64333)	1/23/2003 4:44:40 PM
From: UnBelievable	Respond to of 209892

It’s Like Pissing Up A Rope The Fed attempts to increase the money supply by providing banks with reserves that they can lend against (RPO’s) and by reducing the cost of money (the interest rate). These initiatives don't work when responsible borrowers have borrowed all they are comfortable borrowing and the people who do want to borrow are not credit worthy. The tanking dollar is also death to the US capital markets since foreigners hold a significant amount of our capital. A declining dollar means that when they sell their dollar denominated assets the dollars they receive will by less of their own currency. So a significant incentive is created to repatriate the assets sooner rather than later. Of course in the process of doing so they also are selling dollars and buying their own currency so that further perpetuates the decline in the value of the dollar. It’s a death spiral. Now I imagine that most of the people on this thread knew all this. I guess it’s too bad that AG doesn't read the thread.